AIG sues former execs, new E&S insurer
AIG sues former execs, new E&S insurer | Insurance Business America
Insurance News
AIG sues former execs, new E&S insurer
The insurance giant says former execs engaged in “unlawful misappropriation”
Insurance News
By
Ryan Smith
American International Group is suing the newly formed Dellwood Insurance Group in a bid to stop what the insurance giant calls “unlawful misappropriation” of trade secrets by former AIG executives who left to form the newly launched excess and surplus lines insurer.
The lawsuit was filed against Dellwood and former AIG executives Thomas Connolly, Kean Driscoll and Michael Price, according to a report by AM Best. The suit alleges that Price and Driscoll – who left AIG on June 30, 2023, and March 3, 2024, respectively, violated non-compete agreements that were in force during the time Dellwood was being established.
Price’s non-compete agreement barred him from competing with AIG or interfering with its customer relationships through Sept. 30, 2023, according to AM Best. The agreement also prohibited Price from soliciting AIG employees through June 30, 2024, the lawsuit alleged.
The agreement also included a permanent ban on soliciting AIG’s customers in cases where doing so would require the use or disclosure of the company’s confidential information or disparaging AIG, AM Best reported.
Driscoll’s agreement with AIG allegedly barred him from competing with the company, violating his fiduciary duty of loyalty, or soliciting AIG employees through March 3, 2024. It also included a permanent ban on soliciting AIG customers using confidential information, disparaging AIG or disclosing confidential information, AM Best reported.
AIG said in the lawsuit that Price and Driscoll entered into the non-compete agreements in exchange for “significant consideration,” including long-term incentive plan awards.
“On information and belief, Price and Driscoll breached their obligations to AIG long before their noncompetes expired,” the lawsuit said. “Indeed, Dellwood’s own publicly filed documents reveal that the Dellwood legal entity was formed in Delaware no later than Dec. 28, 2023, and registered to do business in New Jersey no later than Jan. 30, 2024.”
Dellwood announced its launch earlier this month, according to AM Best.
AIG claimed that Price and Driscoll violated their non-compete agreements by recruiting Connolly, formerly the insurance giant’s chief financial officer of North American general insurance and now CFO at Dellwood. The suit also alleges that during his final month at AIG, Connolly forwarded confidential information to his personal email address and solicited AIG employees to join Dellwood, AM Best reported.
“As senior AIG executives, the individual defendants had access to confidential information that is proprietary to AIG regarding virtually every aspect of AIG’s North America general insurance business, including strategy, finance, accounting and underwriting,” the lawsuit said. “Defendants are using AIG’s confidential information to conduct Dellwood’s business.”
A spokesman for AIG told AM Best that the company “will not abide” the use of its assets to “unfairly compete.”
“AIG is seeking to halt what it believes to be defendants’ unlawful misappropriation of AIG’s trade secrets and confidential information, breaches of contract, breaches of fiduciary duty, and unfair competition,” the spokesman said.
The lawsuit claims that AIG has sustained damages including “loss of revenue, valuable business, profits, future profits, and employee morale and goodwill,” according to a Reuters report.
Dellwood told AM Best that it would not comment on active litigation.
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